ebay

Yes, today's post will be about ebay. =)

I discovered ebay 2 years ago, but did not realize the beauty of this site until late last year. Since i discovered how I could purchase items that I needed for less than half the usual price, I've been hooked. Just because it's been used before is no reason to say no to something in perfectly good condition, right? This way I can save heaps on items like books, appliances, computer accessories... even gift cards or vouchers for 1/2 price! (I tried to find Paul Clitheroe's book on ebay... unfortunately, plus postage, it was cheaper to just walk to the bookstore and buy it full price. Go figure.)

Well, you would probably think: isn't that worse for your savings... Since you'd probably be more inclined to buy stuff that you don't really need! Surprisingly, I have never bought something off ebay on impulse, or something I don't really need. Perhaps it's just the detachment of seeing merely a picture of an item without touching it or eyeing it up close. I admit I love shopping, and sometimes can buy things on impulse at the mall. However, whether it's the overwhelming range of choices, the hassle of bidding, or the wait for the parcel to finally arrive... whatever the case, I don't spend more than necessary at this popular worldwide marketplace than I need to. This is perfect, because...

I get to SELL on ebay too! Recently, I managed to sell a voucher (that I bought off ebay) for a profit. This has piqued my interest in selling, because it's a great way to get rid of old stuff and earn extra cash! Now, I've listed a book of mine for sale, and plan to get rid of plenty more stuff from my place in Sydney before I leave Australia for good (after graduation). The only problem is that I lose about 40-50 cents if I list an item and it doesn't get sold. Well, you have to take some risk in business right? And ebay does charge a fee after an item is sold too, which decreases your profit. Nevertheless, I suppose if I don't really need something I own anymore, it's better to convert it into SOME cash rather than just sit there in my closet being useless and eating up room.

All in all, I think ebay is a great way for someone to earn money while getting rid of old stuff and freeing up some space in the house. It's also perfect for getting awesome bargains on almost everything. Lastly, it's addictive - the anticipation of winning a bid at a great price as the clock counts down, the excitement of someone placing a high bid on your item for sale... Definitely, you should try it if you haven't.

See you next post. =)

p/s: my dad should really use ebay. He's kind of a hoarder; loves to keep everything he buys. The house is going to overflow one day. I'll introduce him soon, but hopefully more stuff flows out than into the home!

Investments

Dear Andrew Hingston,

This post will be about investments. Though I have not previously taken much interest in investments, reading through Paul Clitheroe's advice has led me to investigate more. Since I have not really begun to earn my own money yet, considering investments isn't on the top of my priority list. How can I invest when I've just enough to spend for a month before my next allowance comes in?

However, I do understand that investing is one of the keys to financial success. My father has recently invested in a diverse range of investments though previously he had not because of the risk involved. I suppose all the money he earned when I was younger went towards supporting the family (my mother does not work); but now he has bought shares in several different companies and also purchased 3 types of property. I'm happy to say that he has profited from the investment in shares so far. I suppose the apartment's rental payments will take awhile to cover back its original cost, much less bring in money; but it is another asset.

My father did take some of my savings from when I was a child, and invest them for me. So technically I do have investments, but I didn't do the homework. He foresees that the shares he bought from a Malaysian telecommunication company will yield a large profit after several years.

I was intrigued by the no.1 key to successful investing: to invest in something you understand. Prior to this, I assumed that by looking at a company's previous performance, or maybe it's forecasted return, one could determine if it would be a good investment. I guess that isn't all that matters however, which probably limits me to buying shares from say... McDonald's? But those shares aren't cheap. My friend recently recommended to me to buy shares in Suncorp... because the share price isn't too expensive. I've looked through its share webpage, and seen its past performance. Though it looks like it will give me good returns in the future, I'm still hesitant to part with my meagre savings to invest when I don't know that much about it.

Another eye opener reading this chapter was that shares have more advantages than property does. I always thought that investing in land, or a property, would not go far wrong rather than buying shares. Now I realize that there is a lot more to investing in property than meets the eye. Drawbacks like no diversification to minimize risk, not as flexible as shares, and higher fees never occurred to me before. I now understand that shares may be a more viable option for me as an investment especially in the near future because it is less risky and doesn't require a hefty sum of payment each month. It also could be safer to start off with, so I can limit the amount I'm willing to invest. I believe that there are do's and don'ts in the investment game, and one has to be smart to earn off it, no matter if its property or shares.

Though I've learned much about investing, and I believe Paul Clitheroe's advice will be still very valid in the future when I start to earn my own money, I'm still going to bide my time before I dip into the investment pool and for now stick to earning money from my savings in the bank.

Til I return.

Tax - ARgh!

Dear Andrew Hingston,

Apologies for not posting for awhile, over the Christmas break I really did have a proper break and didn't so much as go near my laptop. New year's resolution: post more regularly. I'm starting now, even though the bed is really inviting after a long day at work staring at a computer screen for hours on end.

Anyway, I'm here to post briefly on that matter close to my heart (more like being a constant pain in the butt) - TAX. The reason why I've got my hackles raised again is because, first day back at work after the 1 week break, I was greeted by a lovely email on my payslip for the last week of the year 2009. Lovely because... I was taxed at 46%. That's almost half my pay!

I was quite upset, because I couldn't understand the logic of charging me one tax rate for almost a month then hiking it up to 46% next. I checked ato.gov.au, and discovered that one would only be taxed that much if you made an insane amount of money a year (which obviously I don't) or if you didn't submit a tax file number. I'm pretty sure I didn't fit the bill in either category, so I took it up with my employer immediately. Since I was doing that, must as well take the opportunity to kick up a fuss about the previous tax rate which was higher than it should really be.

Since the last post, I did some snooping around the Australian Taxation Office site, and discovered that there really wasn't much good reason to tax me extra. Initially, I thought that maybe this was a penalty for not filing my tax return last year, but found out that penalties are administered as a lump sum, not a higher tax rate for the following year. Also, penalties are only enforced if someone from the Tax Office had been in contact with me regarding my tardiness in submitting a tax return. This did not happen. Lastly, penalties almost exclusively apply to tax returns that would have resulted in debt to the government, and not to returns resulting in a nil result or refund. In my case, I was entitled for a refund. Clearly, the higher tax rate should not have stemmed from this issue!

I put the tax calculator on the website to use and calculated my estimated tax based on my weekly pay. I believe that there was an issue with my TFN form which I filled out on the first day of work. Probably I mistakenly ticked: NOT Austraian resident for tax purposes, because if i was not, then I would be taxed higher. I am really, having studied here for 3 years.

In any case, the 'happy' ending is that I filled out another form again, and sent it to my employer today. According to her, she sent in the form and managed to get the problem fixed. They can return me the extra tax charged for the last 3 weeks, but prior to that, I can only recover at the end of the financial year by lodging a tax return.This is great, and the money should come in tomorrow, so I'll be eagerly waiting for good news in my payslip tomorrow.

Moral of the story: Do your homework, and never give up. People will help if you ask nicely (and pester them incessantly).

See ya soon.